**Smart Grid:**

Simple Three-Bus Model Optimization

Simple Three-Bus Model Optimization

Aims and Objectives

To gain the basic ideas of electricity market

The Basic Idea of Electricity Market

How to Establish Three-Bus Model

Power Flow ( AC is simplified into DC)

How to Realize Optimization

From Model to Linear Program Problem

**Yiqiao Pei**

1289627

Supervisor:

Prof. Xiao-Ping Zhang

1289627

Supervisor:

Prof. Xiao-Ping Zhang

To realize the optimization of three-bus model

To understand the necessity of real-time pricing

To establish the three-bus model

Electricity is like a commodity.

Cannot be stored

Wholesale market

Retail market

Can be bought, sold and traded

Congestion happens.

Optimization is needed.

DC Power Flow

Based on four assumptions:

Gij is very small compared to Bij.

Voltage angles are small.

Real power flow is significantly larger than reactive power flow.

Voltage magnitude is close to 1.0 in per unit system

Three-Bus Model Diagram

Model Equations and Constraints

Equality Constraints:

Inequality Constraints:

Objective Function:

Can be solved by MATLAB

The Necessity of Real-Time Pricing

Demand is variable.

Definition of Real-Time Pricing

Electricity prices may change as often as hourly, just like wholesale price.

Conclusions and Future Work

Basic ideals about:

electricity markets

why and how the system need optimization

why the real-time pricing is necessary

Optimization under real-time pricing method including:

the improvement of the objective function

different ways of optimization

Thank you.

AC Power Flow

Reference

source: [4]

source: [2]

source: [4]

source: [5]

source: [1]

source: [3]

[1]: http://en.wikipedia.org/wiki/Electricity_market

[2]: X.P.Zhang, "Power Flow Analysis II", in

EECE 3T1 Lecture Notes

, 2013

[3]: http://home.eng.iastate.edu/~jdm/ee553/DCPowerFlowEquations.pdf

[4]: X.P.Zhang, "Pool Model Formulation"

[5]: P.Khajavi, H.Monsef and H.Abniki, "Load Profile Reformation through Demand Response Programs Using Smart Grid", in Modern Electric Power Systems 2010, Wroclaw, Poland

[6]: S.Borenstein, "Time-Varying Retail Electricity Prices: Theory and Practice"

High Price

Applying Real-Time Pricing

Reduced Demand

Low Price

Increased Demand

Numerical Example

-10e4<=Pij<=10e4 MW

0<=Pgi<=5e4 MW

Peak Demand

Off-Peak Demand

source: [5] [6]

in

Unbalanced supply-demand relationship

meets

meets